- AT&T (NYSE:T) is up 2.2% after hours following a third quarter where it beat EPS consensus, but missed revenue expectations that it yesterday called "inflated," and raised its earnings outlook for the full year.
- Revenues were up 19% Y/Y to $39.1B mainly due to the DirecTV acquisition. The company said it looked like analysts who expected $40.4B were counting the DirecTV deal for the full month of July, rather than from July 25 -- from where it said it was permitted to count revenue under GAAP.
- It pointed to solid gains in domestic wireless (2.5M net adds) and a positive move under DirecTV (26,000 domestic net adds), as well as 192K IP broadband net adds.
- Cash from operations came to $10.8B and free cash flow was $5.5B.
- For the full year, AT&T now sees EPS in the range of $2.68-$2.74, above consensus of $2.64, and free cash flow of $15B or better.
- Conference call coming at 4:30 p.m. ET.
- Press Release
- Previously: AT&T slips to session low, saying consensus for Q3 'inflated' (Oct. 21 2015)